HRA

Qualified Small Employer Health Reimbursement Arrangement: Small employers who don't offer group health coverage to their employees can help employees pay for medical expenses through a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA). If your employer offers you a QSEHRA, you can use it to help pay your household's health care costs (like your monthly premium) for qualifying health coverage.

Individual Coverage Health Reimbursement Account: Starting in January 2020, employers can use the Individual Coverage, which provides more flexibility for employers of all sizes. For example, a large company that provides group insurance for full-time employees may offer ICHRA benefits for part-time or seasonal employees.

For thousands of employers, offering health benefits to their employees has been out of their company budget due to the high cost of insurance plans. That all changed in January 2020, when the Individual Coverage Health Reimbursement Arrangement (ICHRA) became available to businesses and organizations of all sizes. 

With this type, employers fund a monthly allowance to reimburse ICHRA-eligible employees for qualified medical expenses and health insurance premiums. Employees must be enrolled in an individual health insurance plan and cannot receive premium tax credits to qualify for reimbursements from an ICHRA.

As the name implies, ICHRA is based on reimbursing employees for insurance rather than buying it. At a high level, the way ICHRA works is very simple:

1. Employers design their plan, including defining which employees are eligible and establishing reimbursement limits
2. Employees purchase the individual plans they want
3. Employees submit claims for reimbursement
4. Employers reimburse employees for valid claims

Our Benefits Division, B3PA, manages all benefits administration plans. Please feel free to visit B3PA's website for additional insurance information and benefit solutions for employers and brokers.